System C's GBPNZD trade reason
Gold arrow: Entry price
Red arrow: Stop loss price
Green arrow: Take profit price
Trade Setup:
GBPNZD formed a major descending channel in the hour 4 timeframe.
Trade confirmation:
Price broke the top of our channel.
Trade reasons:
1) price broke descending channel
2) Good risk-reward ratio ( 1 - 1.35 )
Take profit reasons:
1) There is a strong resistance/support at the black line
2) Take profit level was set to be slightly below that to not over estimate market trend.
Stop loss reasons:
1) Stop loss level was set to be above the middle of our channel
2) If price breaks channel line it might be a false break-out so we have to place it below the line
3) But If price continues to go below the middle of the channel, then we have to get out of the trade because it might be a break down towards the lower side.
Gold arrow: Entry price
Red arrow: Stop loss price
Green arrow: Take profit price
Trade Setup:
GBPNZD formed a major descending channel in the hour 4 timeframe.
Trade confirmation:
Price broke the top of our channel.
Trade reasons:
1) price broke descending channel
2) Good risk-reward ratio ( 1 - 1.35 )
Take profit reasons:
1) There is a strong resistance/support at the black line
2) Take profit level was set to be slightly below that to not over estimate market trend.
Stop loss reasons:
1) Stop loss level was set to be above the middle of our channel
2) If price breaks channel line it might be a false break-out so we have to place it below the line
3) But If price continues to go below the middle of the channel, then we have to get out of the trade because it might be a break down towards the lower side.